Under Internal Revenue Code 1031, investors may reinvest proceeds from a real estate sale into like-kind property as outlined by the IRS. Investors, who no longer wish to perform day-to-day management duties for a property, often turn to tenancy-in-common structured offerings. Through tenancy in common, in which a sponsor offers a property as a co-ownership to a group of accredited investors, those looking to complete a 1031 exchange can have access to institutional quality real estate without the burden of daily management.

Utilizing IRS Code 1031 allows for the deferment of capital gains tax when proceeds from an investment property sale are reinvested in a like-kind property. Real estate investors often look to tenancy-in-common offerings to satisfy a like-kind property exchange which allows for the use of IRS Code 1031.